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Please Help! - What am I missing with Cash-out Refinance?
Each time I try and run my numbers for a cash-out refinance, the numbers don't make sense.
If I'm required (by the bank) to leave 30% in the property...who is finding properties where they can make these numbers work?
I'm looking in Southeast Florida (Delray Beach/Fort Lauderdale/West Palm Beach) and Columbus/Dayton, OH
Many of my properties are coming from the sheriff sale/bank-owned auction and I STILL can't squeeze these tight enough...maybe someone can show me what I'm doing wrong?
Showing property of interest below: This is what I'm understanding...
Property price: $210,100
Rehab: $30k
ARV:$270k
To please a bank, they will ask me to leave 30% in the property when I try and cash out...that's going to mean if it appraises to the expected $270k, I need to leave $189k in (270 x .7) However, I've already purchased it for $210,100...is anyone seeing the difficulty here? even if I got the bank to say I could leave 25%, that's $202,500.
I have to be misunderstanding something in the BRRR process because people are making this work.
Please help!
Thank you!